Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether the renegotiated tax treaty between the UK and Malawi will be subject to parliamentary scrutiny after it is agreed but before it is signed.
Answered by Lord O'Neill of Gatley
Discussions with Malawi over a new tax treaty began some years ago, and substantive agreement has been reached at official level. The Government of Malawi have stated that they hope to be in a position to sign the new treaty in the near future.
The current negotiations are a matter for the two governments. The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model. The UK does adopt these provisions in its treaties where agreement is reached.
This is a matter for the Government of Malawi. However, they have stated that there is no evidence that the current 1955 agreement has motivated British investors to deprive the Government of Malawi of its revenues.
The terms of tax treaties are for the negotiators of both countries to agree. Only when both governments are content with the terms of the treaty will the treaty be signed. It would be inappropriate for draft treaties to be published in advance of signature to the treaty.
In the UK tax treaties are published and subject to parliamentary scrutiny before they become law and enter into force. A form of approval is usually followed in the corresponding country, thus giving a further level of assurance that the terms are acceptable to both Governments.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether the renegotiated tax treaty between the UK and Malawi will be published once it is agreed and before it is signed.
Answered by Lord O'Neill of Gatley
Discussions with Malawi over a new tax treaty began some years ago, and substantive agreement has been reached at official level. The Government of Malawi have stated that they hope to be in a position to sign the new treaty in the near future.
The current negotiations are a matter for the two governments. The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model. The UK does adopt these provisions in its treaties where agreement is reached.
This is a matter for the Government of Malawi. However, they have stated that there is no evidence that the current 1955 agreement has motivated British investors to deprive the Government of Malawi of its revenues.
The terms of tax treaties are for the negotiators of both countries to agree. Only when both governments are content with the terms of the treaty will the treaty be signed. It would be inappropriate for draft treaties to be published in advance of signature to the treaty.
In the UK tax treaties are published and subject to parliamentary scrutiny before they become law and enter into force. A form of approval is usually followed in the corresponding country, thus giving a further level of assurance that the terms are acceptable to both Governments.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of whether the renegotiated tax treaty between the UK and Malawi will improve opportunities for the government of Malawi to raise domestic revenue.
Answered by Lord O'Neill of Gatley
Discussions with Malawi over a new tax treaty began some years ago, and substantive agreement has been reached at official level. The Government of Malawi have stated that they hope to be in a position to sign the new treaty in the near future.
The current negotiations are a matter for the two governments. The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model. The UK does adopt these provisions in its treaties where agreement is reached.
This is a matter for the Government of Malawi. However, they have stated that there is no evidence that the current 1955 agreement has motivated British investors to deprive the Government of Malawi of its revenues.
The terms of tax treaties are for the negotiators of both countries to agree. Only when both governments are content with the terms of the treaty will the treaty be signed. It would be inappropriate for draft treaties to be published in advance of signature to the treaty.
In the UK tax treaties are published and subject to parliamentary scrutiny before they become law and enter into force. A form of approval is usually followed in the corresponding country, thus giving a further level of assurance that the terms are acceptable to both Governments.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government how the ongoing negotiations between the UK and Malawi towards an updated taxation treaty will take account of Malawi’s development situation.
Answered by Lord O'Neill of Gatley
Discussions with Malawi over a new tax treaty began some years ago, and substantive agreement has been reached at official level. The Government of Malawi have stated that they hope to be in a position to sign the new treaty in the near future.
The current negotiations are a matter for the two governments. The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model. The UK does adopt these provisions in its treaties where agreement is reached.
This is a matter for the Government of Malawi. However, they have stated that there is no evidence that the current 1955 agreement has motivated British investors to deprive the Government of Malawi of its revenues.
The terms of tax treaties are for the negotiators of both countries to agree. Only when both governments are content with the terms of the treaty will the treaty be signed. It would be inappropriate for draft treaties to be published in advance of signature to the treaty.
In the UK tax treaties are published and subject to parliamentary scrutiny before they become law and enter into force. A form of approval is usually followed in the corresponding country, thus giving a further level of assurance that the terms are acceptable to both Governments.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what progress has been made in the renegotiation of the 1955 tax treaty between the UK and Malawi, and when the new treaty is expected to be agreed and signed.
Answered by Lord O'Neill of Gatley
Discussions with Malawi over a new tax treaty began some years ago, and substantive agreement has been reached at official level. The Government of Malawi have stated that they hope to be in a position to sign the new treaty in the near future.
The current negotiations are a matter for the two governments. The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model. The UK does adopt these provisions in its treaties where agreement is reached.
This is a matter for the Government of Malawi. However, they have stated that there is no evidence that the current 1955 agreement has motivated British investors to deprive the Government of Malawi of its revenues.
The terms of tax treaties are for the negotiators of both countries to agree. Only when both governments are content with the terms of the treaty will the treaty be signed. It would be inappropriate for draft treaties to be published in advance of signature to the treaty.
In the UK tax treaties are published and subject to parliamentary scrutiny before they become law and enter into force. A form of approval is usually followed in the corresponding country, thus giving a further level of assurance that the terms are acceptable to both Governments.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government to what extent they take into account development goals when negotiating taxation treaties with developing countries, and what role the Department for International Development has in those negotiations.
Answered by Lord O'Neill of Gatley
HM Revenue and Customs (HMRC) have responsibility for negotiating the UK’s double taxation agreements, subject to oversight by HM Treasury. HMRC run an annual consultation exercise to establish the negotiating priorities for the coming year, which are then approved by ministers. As part of this exercise they consider representations made by UK businesses, NGOs and government departments, including the Department for International Development, as well as the UK’s diplomatic missions throughout the world. When the programme is published it also invites representations about our forward programme.
HMRC’s programme for 2015/16 covers the following countries: Colombia, Fiji*, Ghana, Guernsey, India, Isle of Man, Israel, Jersey, Kazakhstan*, Kyrgyzstan, Lesotho*, Malawi*, Portugal*, Russia, Thailand*, Turkmenistan*, UAE*, US, Uruguay*.
The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model, and the UK has agreed to adopt these provisions in its treaties. The object of the negotiations is to produce a text acceptable to both countries, balancing their preferences. There is no timetable for how long negotiations should take. It is quite normal for negotiations to take two to three rounds to complete.
Consultation during the negotiations would be rare.
*Negotiations largely completed.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what consultation they undertake prior to, or during, negotiations with a developing country on a taxation treaty.
Answered by Lord O'Neill of Gatley
HM Revenue and Customs (HMRC) have responsibility for negotiating the UK’s double taxation agreements, subject to oversight by HM Treasury. HMRC run an annual consultation exercise to establish the negotiating priorities for the coming year, which are then approved by ministers. As part of this exercise they consider representations made by UK businesses, NGOs and government departments, including the Department for International Development, as well as the UK’s diplomatic missions throughout the world. When the programme is published it also invites representations about our forward programme.
HMRC’s programme for 2015/16 covers the following countries: Colombia, Fiji*, Ghana, Guernsey, India, Isle of Man, Israel, Jersey, Kazakhstan*, Kyrgyzstan, Lesotho*, Malawi*, Portugal*, Russia, Thailand*, Turkmenistan*, UAE*, US, Uruguay*.
The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model, and the UK has agreed to adopt these provisions in its treaties. The object of the negotiations is to produce a text acceptable to both countries, balancing their preferences. There is no timetable for how long negotiations should take. It is quite normal for negotiations to take two to three rounds to complete.
Consultation during the negotiations would be rare.
*Negotiations largely completed.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what terms they seek in taxation treaties with developing countries, and how they agree those terms before opening negotiations.
Answered by Lord O'Neill of Gatley
HM Revenue and Customs (HMRC) have responsibility for negotiating the UK’s double taxation agreements, subject to oversight by HM Treasury. HMRC run an annual consultation exercise to establish the negotiating priorities for the coming year, which are then approved by ministers. As part of this exercise they consider representations made by UK businesses, NGOs and government departments, including the Department for International Development, as well as the UK’s diplomatic missions throughout the world. When the programme is published it also invites representations about our forward programme.
HMRC’s programme for 2015/16 covers the following countries: Colombia, Fiji*, Ghana, Guernsey, India, Isle of Man, Israel, Jersey, Kazakhstan*, Kyrgyzstan, Lesotho*, Malawi*, Portugal*, Russia, Thailand*, Turkmenistan*, UAE*, US, Uruguay*.
The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model, and the UK has agreed to adopt these provisions in its treaties. The object of the negotiations is to produce a text acceptable to both countries, balancing their preferences. There is no timetable for how long negotiations should take. It is quite normal for negotiations to take two to three rounds to complete.
Consultation during the negotiations would be rare.
*Negotiations largely completed.
Asked by: Lord McConnell of Glenscorrodale (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government with which developing countries they are currently negotiating taxation treaties, and what is the timetable for each negotiation.
Answered by Lord O'Neill of Gatley
HM Revenue and Customs (HMRC) have responsibility for negotiating the UK’s double taxation agreements, subject to oversight by HM Treasury. HMRC run an annual consultation exercise to establish the negotiating priorities for the coming year, which are then approved by ministers. As part of this exercise they consider representations made by UK businesses, NGOs and government departments, including the Department for International Development, as well as the UK’s diplomatic missions throughout the world. When the programme is published it also invites representations about our forward programme.
HMRC’s programme for 2015/16 covers the following countries: Colombia, Fiji*, Ghana, Guernsey, India, Isle of Man, Israel, Jersey, Kazakhstan*, Kyrgyzstan, Lesotho*, Malawi*, Portugal*, Russia, Thailand*, Turkmenistan*, UAE*, US, Uruguay*.
The UK’s starting point in negotiations is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model, the provisions of which differ in some areas to the OECD Model, and the UK has agreed to adopt these provisions in its treaties. The object of the negotiations is to produce a text acceptable to both countries, balancing their preferences. There is no timetable for how long negotiations should take. It is quite normal for negotiations to take two to three rounds to complete.
Consultation during the negotiations would be rare.
*Negotiations largely completed.